Treasury Sell-Off Pushes 10-Year Yield to Highest Since 2002, Dow Futures Slide

Bond markets took another beating heading into the October 1 session, with 10-year Treasury yields reaching levels not seen since 2002. The move followed a rough third quarter for Treasurys and came as France's own bond market showed signs of stress, a pairing that has raised questions about whether European bond troubles could spill into US markets. The yield spike hit stocks directly: Dow futures fell to a three-month low. Micron's earnings provided a partial offset, giving some support to chip stocks even as the broader market stalled. The selling has had an unusual side effect. Retail investors have been piling into an ETF built around the bet that high yields are here to stay, a contrarian trade that assumes the Treasury slump isn't over. Whether that bet pays off, or whether yields reverse, remains the open question hanging over trading this week.